Japan Mandates Reserve Funds for Cryptocurrency Exchanges: Boosting User Security

To safeguard users and combat escalating security threats, Japan’s Financial Services Agency (FSA) is enacting stricter regulations on cryptocurrency exchanges. The new rules require these platforms to maintain financial reserves, similar to those used by traditional financial institutions, in the event of hacking or technical malfunctions. This response to recent high-profile breaches highlights Japan’s commitment to bolstering its financial system’s resilience against vulnerabilities.